FDIC Notches $500 Million Gain on SVB Sale to First Citizens (3)

The Federal Deposit Insurance Corp. is set to collect the instant windfall that it engineered as part of First Citizens BancShares Inc.’s government-backed takeover of Silicon Valley Bank.

The FDIC told First Citizens on Tuesday it was claiming a $500 million profit linked to the increase in that company’s stock, which soared after the acquisition was sealed. The FDIC was entitled to the payment within five business days, the Raleigh, North Carolina-based bank said in a regulatory filing Friday.

The FDIC’s equity-appreciation rights went into the money Monday, Bloomberg News reported, as First Citizens shares surged ...